Maxim Kurbangaleev discusses errors, penalties, and money laundering in the aftermath of the SUEX case.


The SUEX cryptocurrency exchange received approval in 2021. The US Treasury Department has never before placed penalties on a cryptocurrency corporation. Maxim Kurbangaleev provides advice on how to run a legitimate exchange company and stay out of SUEX’s sorry situation.

While mistakes are inevitable in business, some missteps can be extremely costly, with the company facing penalties for fraud, financing terrorist activities, and money laundering.

Maxim Kurbangaleev: How to steer clear of money laundering allegations

“First and foremost, the corporation must select a jurisdiction that is compatible with cryptocurrencies in order to avoid repeating SUEX’s mistakes while launching a cryptocurrency exchange. It is not possible to lawfully operate a business without a cryptocurrency license, according to Maxim Kurbangaleev.

Numerous countries throughout the world now grant licenses for the bitcoin industry. Working with virtual assets legally is made possible by the cryptocurrency license, which lowers the possibility of sanctions resulting from money laundering and other illegal activity.

A license will allow a cryptocurrency business to issue digital currency, carry out wallet transactions, trade cryptocurrency for fiat money, and do a lot more.

Kurbangaleev Maxim: How much does it cost to obtain a license for cryptocurrencies?

For instance, in the USA, a firm needs to comply with regulations pertaining to the legal address, beneficiaries and founders of the enterprise, and the liquidity of the allowed capital. Companies that conduct operations to convert cryptocurrencies for fiat currency and vice versa are required to obtain a “Money Transmitter License” in the United States.

The Financial Crimes Enforcement Network of the US Treasury states that all operations of the cryptocurrency corporation will be governed by normative legislative acts if the exchange is classified as a “Money Transmitter.”

In addition to America, other nations that offer cryptocurrency licenses include England, Estonia, and Switzerland, which has made cryptocurrencies legal on a federal level. Upon determining the appropriate jurisdiction, the business must establish a legal corporation dedicated to the sale of cryptocurrency. Coordination of its operations with the national regulators of the country where the cryptocurrency company is established is the next stage. The next step is to locate and sign contracts with authorized exchange platforms where cryptocurrency will be bought. Verify if they abide with the American and European legal criteria for AML. According to Maxim Kurbangaleev, “all these steps will help not to repeat the path of SUEX and avoid sanctions and accusations of money laundering.”

Maxim Kurbangaleev: AML experts are necessary for cryptocurrency exchange staffs

Thus, the firm has been established, the jurisdiction has been selected, and the cryptocurrency license is ready.  Contracts with exchange platforms have been completed, and all agreements with regulators have been finalized. And after that? Establishing fiat bank accounts and hiring AML officers are essential. Subsequently, it’s critical to put an AML strategy into place and create measures to stop the funding of terrorism and money laundering. Maxim Kurbangaleev explains, “The company must properly conduct AML checks in order to prevent any criminal activity and not be in the place of SUEX.”

Doing all the necessary inspections would be impossible without a trained crew of AML officers. Employees must promptly recognize, evaluate, and decide the risks of money laundering and other fraud in order to take the necessary action. Crypto exchanges can manage risks and avoid company punishment by adopting a risk-oriented approach.

“You must employ AML services like Ciphertrace, Chainalysis, and others in addition to AML policies. You can begin working as soon as the company satisfies all legal requirements in the areas in which it intends to operate. However, we must remember that AML protocols must be adhered to for every client.

The expert thinks that a passport and a picture of themselves should be the initial documents that every client should present. Once the client’s identification has been confirmed, it is imperative to perform a check on terrorist, sanctions, and other databases to ensure the user is not connected to any illicit activities. Cryptocurrency cases should go through AML services for verification. Each exchange should consider these guidelines.

“Illegal conduct does not elevate the sector as a whole or increase the company’s valuation. When starting an exchange, abide by the law to avoid making the same mistakes that SUEX did. Never forget that businesses operating in the legal sector are obligated, under established KYC and AML rules as well as normative legal actions, to confirm the client’s identification. Do not disregard the AML regulations if you want to run a reliable and long-lasting cryptocurrency exchange firm. In summary, Maxim Kurbangaleev.